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Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Amazon's first quarter brings another record gain

Amazon's first quarter brings another record gain



  bezos-image-2

Amazon CEO Jeff Bezos at a wired conference last year.


Wired

The Amazon & # 39; s growing not as fast as it used to, but it does earn much more than before.

For the first quarter, Amazon reported a fourth straight record gain of $ 3.6 billion or $ 7.09, and the trouncing analyst estimates $ 4.72 per share, while rising past its previous $ 1

.6 billion annual earnings. $ 3.17 per share.

Revenue increased 17% to $ 59.7 billion at the higher end of the company's $ 56 billion guidance to $ 60 billion.

The company expects to post $ 59.5 billion to $ 63.5 billion in revenue in the current quarter compared to $ 62.4 billion predicted by analysts asked by Yahoo Finance.

Separated Amazon announced on Thursday that it plans to turn its Prime two-day shipping into a one-day service .

Amazon Finance Manager Brian Olsavsky said on a call with reporters Thursday that the huge earnings growth was partly due to lower-than-expected costs and squeezing more efficiency from the Amazon stores.

"[We] probably overestimated a little about how much we would spend and rent in the first quarter," he said, but he warned that such expenses would rise later this year.

The world's largest ecommerce company reported its latest issues after undergoing a tough start in 2019. The company faced opposition to local activists and politicians for its HQ2 development project in New York, which would bring 25,000 new employees to the city. In February the Amazon project scrapped after more than a year of searching for a place. A similar large campus is still scheduled for Arlington, Virginia.

Finally, CEO and founder Jeff Bezos completed this month his divorce with his wife for 25 years. His new boyfriend and a dustup with the National Enquirer supermarket tabloid made the usual private executive regularly on gossip pages.

So far, no problems have been found to harm the Amazon business in any significant way, and its holding is around 24% this year. Shares in Thursday were flat.

Although Wall Street has taken the HQ2 debacle and Bezos & # 39; divorce in step, it places greater emphasis on Amazon's spending and growth. Olsavsky warned in February that Amazon's investments in more infrastructure and employment will increase this year, which may reduce the surplus. He repeated this point again Thursday, despite better results in the first quarter. Amazon does not grow at the same rate it was a few years ago, as it is now a much larger company. Time will tell if Amazon will remain a Wall Street tax after revenue growth fell below 20%, a level it could have maintained for three years until the last quarter.

Amazon Web Services, the company's hugely profitable cloud computing device, once again supported earnings growth. AWS reported in the first quarter 2.2 billion. USD in operating income, an increase of 59% from the previous year. By comparison, the Amazon's North American retail, which results in nearly five times more revenue than AWS, has only slightly higher operating profit than the cloud unit.

The company's "other" revenues, which primarily comprise the fast-growing advertising business, a weaker revenue growth of 34% in the last quarter to $ 2.7 billion. Olsavsky said on Thursday that the lower increase was due to part of an accounting change and added that the advertising business is growing at a higher rate than the 34%.

The total number of employees was 630,600, down from a mirrors of 647,500, but an increase of 12% from the previous year.

Originally released April 25, 13:05 PT.
Update, 2:04 pm: Adds details from CFO calls.


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